Why foreign investors are buying Greek banks

Dimitris Παφίλα
The reasons for which the foreigners have bought bank shares? The answer to this question is related to non-performing loans …
(NPLs). For over a year, the foreign investors found that the moves that have been made are numbered on the fingers (Actua, KKR).
It was therefore decided that the definition of objectives of the SSM and the audit per quarter. The results 9μηνου, however, the course of Piraeus Bank, Eurobank, National, Alpha bank indicates that, made an effort in the midst of major problems of administration, on a National and Piraeus.
Even if you don’t proceed to the next period of restructuring, sales of red loans, or not allow the entry of new investors, the foreign investors have “tie up” their investment.
This is called SSM. If you don’t proceed with the movements, the supervisor will step in and decide measures for the consolidation of the loans. That’s why the foreign investors led to the shares in what is higher, as the index price / book value was low.
Alpha Bank with a 16,71% return in a month has reached close to the levels of the capital increase with a price-to-book value of 0,31. Eurobank paid 26,02% with the price-to-book value of 0.22. The National Bank with a yield of 13,3% has a price-to-book value of 0,21. Finally, Piraeus Bank 34,48% has a price-to-book value of 0.17.
In spite of the indicators, as they say foreign investors, the Greek shares are purchased, all as the red loans relate to and the 4 banks, after that, good done for the 4 banks.
The reaction after Italy I’ll show you the way
Many investors are afraid of the Italian referendum and believe that it will bring turmoil to stock markets, a negative result. Foreign investor stresses to the Newmoney.gr: “H Italy enters the crisis, while Greece has made 3 recapitalisations (because of the crisis one can not say that it has come out. The Greek banks also implemented capital controls, and deposits are guaranteed while loans are not given. From every side, Greek banks have things to do while Italian banks will find themselves hanging in a possible crisis,”
The possible reaction after the Italian referendum will show you the way and in the Greek market. Because debt and the quantitative easing will wait for the first few months of 2017.
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